- An N12 notice can be used when the landlord, a purchaser, or a specified close family member intends to move into the rental unit.
- The landlord must give at least 60 days notice, aligned with the end of the tenant's rental period or lease term.
- Landlords must pay the tenant compensation equal to one month's rent, or offer another acceptable rental unit, on or before the termination date.
- The LTB requires the landlord to demonstrate genuine "good faith" intent to actually use the unit as claimed — not simply to re-rent it at a higher price.
- If the unit is not used as claimed within a specified period, the former tenant can apply for a penalty against the landlord, including being ordered back into the unit or compensated.
- N12 applications have faced increased LTB scrutiny in recent years due to documented cases of misuse to circumvent rent control.
The N12 Process at a Glance
Yes, a landlord can evict a tenant so that they, a purchaser, or a specified family member can move into the rental unit — using the N12 Notice to End Tenancy Because the Landlord, a Purchaser or a Family Member Requires the Rental Unit. However, this notice comes with more requirements and closer scrutiny than most other eviction grounds, given documented past misuse of this provision.
Who Qualifies to Move In Under an N12
The Residential Tenancies Act limits eligibility to a specific, defined list:
- The landlord themselves.
- A purchaser of the property, under a valid agreement of purchase and sale.
- The landlord's spouse.
- A child or parent of the landlord, or of the landlord's spouse.
- The purchaser's spouse, child, or parent, under a valid agreement of purchase and sale.
- A caregiver for the landlord or a qualifying family member, in certain circumstances.
An N12 cannot be used to move in an employee, extended family member outside the defined list (such as a sibling or cousin), or any other individual not specifically named in the legislation.
Notice Requirements
An N12 requires a minimum of 60 days notice, and the termination date must align with the end of the tenant's rental period (for a month-to-month tenancy) or the end of a fixed lease term.
Mandatory Compensation
Unlike most other eviction notices, an N12 requires the landlord to provide compensation to the tenant:
- An amount equal to one month's rent, or
- Another rental unit acceptable to the tenant.
This compensation must be paid on or before the termination date specified in the notice — not after the tenant has already moved out.
The mandatory compensation reflects that N12 evictions are not based on any fault of the tenant — the tenant is being displaced through no wrongdoing of their own, and the law requires the landlord to help offset the disruption and cost of relocating.
The "Good Faith" Requirement
Perhaps the most important — and most contested — element of an N12 eviction is the requirement that the landlord (or qualifying family member) genuinely intend to occupy the unit, in good faith, for the purpose stated in the notice.
A tenant challenges an N12 at the LTB hearing, presenting evidence that similar units in the building have recently been re-listed for rent shortly after other tenants were evicted under similar N12 notices. This pattern of evidence can support a finding that the landlord's claimed intention was not made in good faith.
Why the LTB Scrutinizes N12 Applications Closely
Due to documented cases across Ontario of landlords using the N12 as a pretext to remove tenants (particularly long-term tenants paying below-market rent under rent control) and then re-renting the unit at a significantly higher rate, the LTB and courts have applied increasing scrutiny to these applications in recent years.
Landlords using an N12 in genuine good faith should keep clear documentation supporting their stated intention — such as evidence of the family member's current living situation and reasons for the move — which can be helpful if the good faith issue is raised at a hearing.
Penalties If the Unit Is Not Used as Claimed
If a landlord evicts a tenant under an N12 but does not actually move the stated person into the unit — or re-rents it to someone else within a certain period — the former tenant can apply to the LTB, generally within one year of being evicted. If the LTB finds bad faith, it can order:
- Compensation to the former tenant for moving and any increased rent costs.
- A penalty payment to the former tenant.
- In some circumstances, an order allowing the former tenant to move back into the unit.
Bad-faith N12 findings can result in substantial financial consequences for landlords, well beyond the original compensation paid at the time of eviction — reinforcing the importance of only using this notice for genuine purposes.
Tenant Defences to an N12
Tenants facing an N12 notice have specific avenues to challenge it at the LTB hearing:
- Questioning whether the person named genuinely qualifies under the legislation's defined categories.
- Presenting evidence suggesting the landlord's stated intention is not genuine.
- Confirming whether proper compensation was actually offered and paid.
- Challenging whether proper notice and timing requirements were met.
Whether you are a landlord planning an N12 or a tenant who has received one, understanding your rights matters. Call our Toronto landlord & tenant lawyers at 416-274-2222 for a free consultation.
Frequently Asked Questions
The landlord themselves, a purchaser of the property under an agreement of purchase and sale, or a specified close family member of the landlord (such as a spouse, child, parent, or the landlord's spouse's child or parent).
The landlord must pay the tenant an amount equal to one month's rent, or offer the tenant another acceptable rental unit, on or before the termination date specified in the notice.
It means the landlord (or qualifying family member) must genuinely intend to occupy the unit as claimed, not use the N12 as a pretext to re-rent the unit at a higher price after the tenant leaves.
The former tenant can apply to the LTB within one year, and if the LTB finds the landlord did not act in good faith, it can order the landlord to compensate the tenant, pay a penalty, or in some cases order the tenant reinstated to the unit.
The Residential Tenancies Act generally expects the landlord or family member to occupy the unit for at least one year, though the specific circumstances of each case are considered by the LTB in assessing good faith.
No — that requires an N13 notice for renovation or demolition, not an N12, which is specifically for personal occupation by the landlord, purchaser, or qualifying family member.
No. N12 eligibility is limited to the specific categories in the Residential Tenancies Act — the landlord themselves, a purchaser, or a specified close family member — not employees or other associated individuals.
Yes. Tenants can raise the good faith issue at the LTB hearing, present evidence questioning the landlord's stated intentions, and if the eviction proceeds, can later apply if the unit is not used as claimed.